It’s Time to go on the Offensive

According to Plimsoll Publishing Ltd, a leading UK financial research company, 90 of the top 690 businesses in the UK Scientific & Laboratory Equipment industry are woefully exposed to being snapped up as a ‘bargain acquisition’. Their research suggests companies that have built up cash reserves over the last few years now need to seize the moment and make an acquisition while it is still a buyers’ market.

David Pattison, Senior Analyst and author of the latest Plimsoll Analysis, explained:, “It is clear that the recession has caused a sea change in the Scientific & Laboratory Equipment industry and for companies with cash to spend, there is a pool of targets to choose from. With the market starting to recover its better to spend some of that cash on a discount acquisition than have it sat in the bank.”

Pattison suggests that there are 5 factors at the heart of this which he details below:

1. “The recession has forced 217 companies in the market into a loss making position. As profitability has fallen so have company valuations. In fact one company has seen its value fall to just 40% of its previous high. For a company looking for a cheap and easy way to ‘buy in’ some extra market share there are some bargains to be had.”

2. “Despite the lock down in the financial sector corporate debts are still rising. 58 companies in the UK Scientific & Laboratory Equipment industry now have debt levels rise which I would class as unmanageable. Some great businesses are available for those able to finance a bail out.”

3. “We are seeing an ageing set of owners in the market with 556 individuals working beyond retirement age. How many of these older owners have the appetite to rebuild their businesses battered by the last 2 years? Of course some will still have the stomach for it but for many a potential sale must be a serious consideration.”

4. “Those companies that didn’t make quick, targeted cuts in the face of falling demand are no longer competitive in the current market. 237 such companies are now well behind the curve and a merger or takeover could be the best way to recoup the economies of scale quickly. New owners would be looking to trim the excess quickly and slashing jobs seem the most obvious place to start.”

5. “I was shocked at the level of cash in the market currently. I identified 288 companies that I would class as ‘cash rich’ that have the facilities to finance the right deal at the right price. For any owner looking to sell their business, these are the guys they should be courting.”

The new Plimsoll Industry Analysis – Scientific & Laboratory Equipment gives an instant performance rating on the top 690 companies in the market and an overview of which companies are ripe for acquisition and who is set to be buying. A graphical and written analysis will also tell you which companies are in trouble and who is getting it right.

Readers of International Labmate/Labmate UK & Ireland are entitled to a £50 discount of this new special edition of the Plimsoll Industry Analysis – Scientific & Laboratory Equipment. Call 01642 626400 for further details and quote reference PR/PC40.

Think Smallest First when Policy-Making, FPB tells Government

Legislators need to think smallest first in order to safeguard the future of Britain’s small firms, according to the Forum of Private Business (FPB). In response to a Government consultation, the FPB has argued that policies are often thought up with only big businesses in mind andbelieves little consideration is given to the disproportionate impact new rules and regulations have on smaller firms, which often employ just a handful of people and lack the expertise needed to comply with the law. And with much less time and money available to understand and interpret the UK’s ever-changing regulations, it is increasingly difficult for SMEs to compete with their larger rivals. This, the FPB believes, is an alarming trend which could lead to Britain’s economy being dominated by large companies, depriving consumers of choice and variety.

The FPB submitted its points to the ‘Thinking Business in Policy’ interim report review, which is looking into the effects policy-making has on business. Among other questions, the consultation asked how policy-makers can better understand the impacts their decisions have on businesses. The FPB responded by highlighting the forthcoming Equality Bill as an example of how the Government often under-estimates the effect legislation has on small firms.

The Government’s own ‘impact assessment’ claims that an SME will need just an hour to understand the section of the new law dealing with disability discrimination. However, the FPB believes that a typical SME owner/manager, inexperienced in understanding and interpreting complex legal documents, will take much longer to comprehend the document and make any necessary changes to his or her business.

FPB policy representative Matt Goodman, said: “We believe that, through improved understanding of the nature of small businesses and by making much more accurate assessments of the implications of the legislation, decision-makers can make informed judgements about the advantages and disadvantages of policies.Policy-makers should also consider how their policies are going to boost the UK economy. It’s not enough simply to consider the social benefits of legislation without giving thought to the bigger picture. Many businesses feel they are often seen as those which should automatically pay for attempts at influencing social change.”

The FPB also recently responded to another consultation – the Better Regulatory Executive’s call for evidence on the 2010 to 2015 simplification agenda. The BRE is a government body tasked with reducing the burden legislation has on trade and industry. It has been set a target of saving businesses £6.5 billion over the next five years. The FPB has welcomed this but believes a comprehensive regulatory review, looking at every
existing piece of regulation and asking if it can be scrapped or simplified, would be the best option.

Mr Goodman said: “We feel that a comprehensive regulatory review would, most importantly, help government departments understand how pieces of legislation interact with each other, creating cumulative administrative and policy burdens. This would help identify areas of real cost to government and how those costs filter down to businesses, ultimately tightening the targets set under the better regulation agenda and creating
realistic opportunities for savings.”

How Should Business React to Carbon Change?

The Copenhagen summit demonstrated the complexity of establishing a global approach to climate change, leaving businesses unsure how to plan for an internationally regulated carbon emissions environment. But a new £50 million UKbased research centre will harness the research power of leading universities both to develop clean technologies and help in the reduction of carbon emissions. It is a joint initiative of Yorkshire Forward and the region’s universities.

The Centre for Low Carbon Futures (CLCF), was officially launched in London, Jan 14, at the Palace of Westminster, hosted by York MP Hugh Bayley. Guest speakers were the former Deputy Prime Minister John Prescott and the Minister for Yorkshire and the Humber, Rosie Winterton.

By conducting ‘translational’ research into clean technologies, the Centre will be a conduit for the practical application of low carbon technologies, helping both to attract inward investment and enhance business growth and economic output. It will give the business community a clear direction to help them to increase investment, economic outputs and actual jobs in a low carbon world.

Regional development agency Yorkshire Forward has contributed £5.7m to the Centre, which is led by the Universities of Hull, Leeds, Sheffield and York and draws on the strengths of all the region’s education institutions. It is developing an innovative way of translating research into business applications, adding value to regional and national economic development and will help in meeting regional targets to reduce Green House Gas emissions.

Director Jon Price said "The Centre has a great opportunity to position itself at the forefront of developing practical measures to reduce carbon, on a regional, national and international level. This can be achieved through the practical application of product development from new low carbon technologies. It’s a unique conduit for the region’ academic and business communities to collaborate and deliver on clean technologies, providing a positive economic impact to the region."

Tom Riordan, Chief Executive of Yorkshire Forward, added: "The Centre for Low Carbon Futures will put our region at the forefront of low carbon technologies. It will allow Yorkshire and Humber’s businesses to address low carbon challenges and access cutting edge solutions which will help them exploit the opportunities arising from climate change. In turn this will help build a competitive, sustainable and carbon efficient regional economy.”

Professor Brian Cantor, Vice-Chancellor of the University of York and Chair of the Centre’s Interim Board, says: "The Centre for Low Carbon Futures is an international initiative which will draw on the huge research strengths of experts in leading universities. The universities of Hull, Leeds, Sheffield and York also have longstanding relationships with global business and industry, and will be drivers not only of the knowledge economy
but also the low carbon economy.”

Rosie Winterton, Minister for Yorkshire and The Humber, added: “This excellent initiative will help us meet the two key challenges facing the country and our Region, those of climate change and developing a sustainable economic future. Collaboration between Universities and businesses is one of this region’s great strengths. This new Centre will play a key role in helping us to continue to develop knowledge and technology to a world class level and ensure that our region is at the forefront of moves towards a low-carbon future.”